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Unregulated Forex Brokers2 min read

Throughout the existence of the entire market, there are brokers that are regulated by the state body, while there are those that are not regulated at all. Although it is recommended to use trading platforms that are regulated, why not use those that are not regulated? Are there any advantages and disadvantages that unregulated brokers will have to take into account? In this article, we will take a look at specific pointers to unregulated brokers that you should consider before using them.

Non-Regulated Brokers

Before we delve into the details of what characteristics unregulated brokers have, here are some that you should consider before entering the market:

SimpleFX allows traders from 160 countries to enter international trading floors and work with the most advanced financial instruments. The company is registered in Saint Vincent and the Grenadines. The broker indicates that his clients are more than 200,000 traders from around the world. And his main advantages are the best prices, execution and liquidity, innovative trading technologies, the multiplicity of trading tools, the ability to trade year-round and the provision of security guarantees for client funds.
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LMFX states that it allows customers to «trade everything everywhere» offering Equity CFDs and Forex markets on its site across 7 platforms. This site is secure and with client segregated accounts they emphasise this aspect of the site, although the absence of a license is something of a concern. Trading with tight spreads is another positive feature, while the range of bonuses and promotions on offer will be certain to attract interest. Let’s dive deeper and see whether LMFX really is a legitimate venue for Forex trading.
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The question you may ask yourself is why are these brokers not recommended? The first reason is that they are not adjustable. The main issue with an unregulated broker is that the rules and guidelines that they post on their website cannot be in agreement with other rules established by other regulated trading sites. Another reason why trading with an unregulated broker is risky is because of the number of exaggerated professionals that they advertise.

Be it his support, high bonuses for registration, or a trading platform, if the broker promises extra features, then the chances of getting into scammers are pretty high. It is very important to understand that these brokers are listed as not recommended for a reason, so as not to assume that they are fraudulent or carry out fraudulent activities.

Problems With Unregulated Brokers

Like any type of commercial product, when a customer enters the market and spends his time and money on a purchase, they expect to get the most out of the product. Therefore, different brands went through many tests in order to win the consumer and prove that their products are legitimate and trustworthy. If you want to invest, then brokers should provide most of the services for you to gain your trust for further work. Only trading platforms that hold a high level of service are the ones you should use.

The reasons why it is recommended to use regulated brokers because they fulfill three categories:

  • Trading platform – there should not be any problems with the trading system, which includes the best spreads, swap, instant opening of a transaction and any other characteristic features.
  • User Interface – The site must be user friendly. The support system is always online for help and training materials are available.
  • Transfer of funds – withdrawals and deposits occur without problems and slowdowns, including a small transfer fee.

To avoid any trading problems, using a regulated broker includes more advantages than with one that does not. This does not mean that there are no unregulated platforms that are not trustworthy. To improve your trading skills to a higher level, it is better to trade with one that is regulated and performs the three above categories.